Retirement

Most expect to work into retirement years

New research shows most Australians in paid employment expect to be working in some form well into their retirement.

A total of 61 per cent of workers surveyed believed their working life would continue into their retirement years.

Seventy per cent said they expected to draw a government pension in retirement.

Galaxy Research’s Ready to Retire Study, commissioned by News Corp Australia in partnership with Industry SuperFunds, found many workers were concerned about how much they would need in retirement savings to live stress-free.

One in two households set for comfortable retirement, report shows

Only one in two Australian households are expected to have enough money for a comfortable retirement, a new report shows.

The latest CommBank Retire Ready Index released this week shows that 53 per cent of households would have enough combined super, personal assets and the Age Pension.

But when the Age Pension was removed, the number of households able to afford a comfortable retirement dropped to 17 per cent, and to a meagre six per cent when based on superannuation only.

Breakfast seminars discuss retirement finances

If you are newly retired, transitioning to retirement or about to give up paid work, National Seniors’ breakfast seminars may help sharpen your financial focus in 2017.

The seminars will be presented by National Seniors Financial Information Desk.

Topics covered include understanding your own situation and the resources you can use, opportunities for fully self-funded retirees, Government Income Support (GIS) and the potential use and types of Equity Release Products.

A question and answer session will follow each presentation.

Survey shows Australians delaying retirement

A new survey has found the average age that Australians intend to retire has risen from 58 to 61 in the last two years.

But the Roy Morgan Single Source survey of 50,000 people also showed that the average gross wealth per person, excluding owner-occupier homes, was just $286,000 in 2016, up just 3.6 per cent since 2014.

The overall conclusion from the survey was that on average, intending retirees will be relying on some government benefits for some time to come, even with the changes to the eligibility rules.

Interest rate cut bad news for retirees

This week’s interest rate cut is bad news for retirees, says the consumer lobby for older Australians.

The Reserve Bank has decided to lower the official cash rate by 25 basis points to 1.50 per cent.

National Seniors chief advocate Sarah Saunders said the decision was bad news for retirees.

“This cut will be a blow to anyone living off simple, low-risk investments”.

Saunders called on the Government to now adjust the social security deeming rates accordingly.

“Having fallen steadily since 2011, interest rates are sitting at all-time lows”.

Tax office cracks down on tax avoidance schemes

The Tax Office (ATO) has launched an initiative aimed at educating individuals about the potential pitfalls of retirement planning schemes.

Project Super Scheme Smart – which forms part of the ATO’s broader focus on tax avoidance schemes – provides information on what to look out for, and what to do if you fall prey to a risky scheme.

ATO deputy commissioner, Michael Cranston, says the initiative aims to keep Australians safe from risking their retirement nest egg.

Older workers can boost the economy

Harnessing the power of an older workforce could deliver gains of up to $78 billion for the Australian economy, a new report reveals.

According to the Price Waterhouse Coopers (PwC) report, if Australia’s employment rates for workers aged 55-plus were increased to those in Sweden (where 74% of those aged 55-64 are employed), Australia’s GDP could be around 4.7% higher.

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